Q3 employment cost index up 0.5% in Q3

Compensation costs for civilian workers increased 0.5 percent, seasonally adjusted, for the 3-month period ending in September 2020, the U.S. Bureau of Labor Statistics reported today. Wages and salaries increased 0.4 percent and benefit costs increased 0.6 percent from June 2020.

Compensation costs for civilian workers increased 2.4 percent for the 12-month period ending in September 2020 and increased 2.8 percent in September 2019. Wages and salaries increased 2.5 percent over the year and increased 2.9 percent for the 12-month period ending in September 2019. Benefit costs increased 2.3 percent and also increased 2.3 percent for the 12-month period ending in September 2019.

Compensation costs for private industry workers increased 2.4 percent over the year. In September 2019, the increase was 2.7 percent. Wages and salaries increased 2.7 percent for the 12-month period ending in September 2020 and increased 3.0 percent in September 2019. The cost of benefits rose 2.0 percent for the 12-month period ending in September 2020 and also increased 2.0 percent in September 2019.

Employer costs for health benefits increased 1.8 percent for the 12-month period ending in September 2020.

Among private industry occupational groups, compensation cost increases for the 12-month period ending in September 2020 ranged from 1.9 percent for management, professional, and related occupations to 3.7 percent for service occupations. Within industry supersectors, compensation cost increases ranged from 2.1 percent for education and health services to 4.1 percent for leisure and hospitality.

Compensation costs for state and local government workers increased 2.3 percent for the 12-month period ending in September 2020, compared with an increase of 3.1 percent in September 2019. Wages and salaries increased 1.8 percent for the 12-month period ending in September 2020 and 2.7 percent

a year ago. Benefit costs increased 3.2 percent for the 12-month period ending in September 2020. The prior year increase was 3.5 percent.